June 10, 2019 / 1:37 AM / 6 days ago

PRECIOUS-Gold off 14-mth peak after Mexico migration deal settles nerves in markets

June 10 (Reuters) - Gold retreated from a 14-month peak on Monday after an agreement late last week between the United States and Mexico to avert a tariff war crimped safe-haven demand for the metal.

FUNDAMENTALS

* Spot gold had fallen 0.5% to $1,333.44 per ounce by 0103 GMT.

* In the previous session, the metal hit its highest since April 19, 2018 at $1,348.08 an ounce.

* U.S. gold futures were 0.5% lower at $1339.90 an ounce.

* The United States and Mexico struck a deal on Friday to avert a tariff war, with Mexico agreeing to rapidly expand a controversial asylum programme and deploy security forces to stem the flow of illegal Central American migrants.

* U.S. President Donald Trump defended the deal with Mexico against criticism that there were no major new commitments to stem a flow of Central American migrants crossing into the United States, and said on Sunday more details would soon be released.

* U.S. stock futures jumped, drawing optimism from the agreement, while being further supported by bets of a U.S. interest rate cut after Friday’s soft payroll data.

* The U.S. dollar also rose 0.2% against the safe-haven yen having been pressured most of last week by increasing bets of a U.S. interest rate cut.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.15% to 756.42 tonnes on Friday from 757.59 tonnes on Thursday.

* The value of China’s gold reserves rose to $79.83 billion in May from $78.35 billion at the end of April, central bank data showed on Monday.

* Gold prices in India flipped into discounts last week as a rally in local prices dampened demand, while premiums in other major Asian hubs declined as a price surge prompted investors to sell back bullion.

* China is preparing to curb some technology exports to the United States, the chief editor of China’s Global Times newspaper said on Saturday, thawing hopes of a Mexico-like settlement in a trade war between the two countries.

DATA AHEAD (GMT)

* 0830 UK GDP Est 3M/3M April

* 0830 UK GDP Estimate MM YY April

* 0830 UK Manufacturing Output MM April

* NA China Exports YY May

* NA China Imports YY May

* NA China Trade Balance USD May (Reporting by Arijit Bose in Bengaluru; Editing by Joseph Radford)

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